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Intelligent Finance

Examples of recent questions relating to Intelligent Finance transfer of equity

  • My ex are looking to get a lawyer in place for a new mortgage with Intelligent Finance. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over UK. How necessary is it to instruct a lawyer local to us?
  • Is it sensible to stop my mortgage payments with Intelligent Finance as soon as a date for my remortgage and transfer of equity has been agreed?
  • My existing home loan is with Intelligent Finance. Can I transfer equity to someone less than 18 years old?
  • I am transferring my equity in house in Woodside to my co-owners fiance, they are reapplying to Intelligent Finance. We are haggling as to who must pay the legal bill for the transfer of equity. Is this normally shared or is one party obliged to cover the costs of?
  • Intelligent Finance yesterday agreed I can take over the mortgage on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?
  • As things stand I have a joint Intelligent Finance mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my partner. The outstanding mortgage is about 300k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
  • Law month I split up with my wife of thirty years. I'm now living with my mum and dad and she wishes to stay in the property and pay me off. What portion do I get. Is it half of the equity after discharging the Intelligent Finance home loan? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal

Examples of questions in a lawyer questionnaire relating to Intelligent Finance Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Is the transfer of equity subject to a court order? If yes please supply a copy

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Who will be responsible for the costs of the Transfer of Equity?

Has one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Information to consider in in addition to the above Intelligent Finance transfer of equity Questions and Answers :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your lawyer will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Intelligent Finance.

Preparing the Transfer of Equity with a Intelligent Finance Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content on this webpage is for general information and only applies to England and Wales. It should not be regarded as advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.


Frequently asked questions relating to Intelligent Finance transfer of equity